An Empirical Analysis:the Effect Of Undertaking International Service Outsourcing On Employment In China

As an important component of the modern service industry, international service outsourcing is developing rapidly, and greatly promotes the international industrial transfer of the economic globalization process. International service outsourcing has less environmental pollution, lower resource consumption, higher load of information technology, higher added value, such as the ability to absorb employment advantage. Therefore, vigorously developing the international service outsourcing has a positive effect on the adjustment and upgrading of the industrial structure of a country. In recent years, more and more developed countries have started the development of service outsourcing, prompting a massive redistribution of jobs, from the United States, Japan and other developed countries to China, India, Malaysia and other developing countries in Asia. Actively undertaking international service outsourcing can effectively promote the employment in developing countries. In the face of this opportunity, China should take part in the international service outsourcing team as soon as possible, make full use of its own advantage, to improve China’s current employment problem. It is a subject worthy of our study. In this view, the article focuses on the effect of undertaking international service outsourcing in China to the number of jobs, in order to analyze whether there is a certain relationship between them, and what kind of relationship is. And put forward relevant policy suggestions on the basis of empirical research.This paper has made its analysis from two aspects of qualitative and quantitative. Based on the relevant economic theories, deduce a possible relationship between international service outsourcing and employment, and establish a theoretical framework for the paper’s writing. Next, collect and analysis respectively the data of service outsourcing market and the labor market in the recent years, and obtain a expected conclusion that from the angle of reality service outsourcing can boost China’s employment. Then from the angle of the mechanism of international service outsourcing to employment, focus on the analysis of influences between service outsourcing and employment quantity.Finally, this paper makes an empirical study to further determine the degree of correlation between international service outsourcing and employment. The foundation of the employment demand in this paper is pushed by Cobb-Douglas production function. The model includes four variables, such as salary, capital stock, output value and the outsourcing rate, and a dependent variable, labor. Empirical results show that undertaking international outsourcing has a positive and significant effect on the employment of China. Moreover, other two models are based on the first one. They are respectively compared the influences on employment to undertake production outsourcing and service outsourcing, and to undertake international service outsourcing on capital intensive industry and labor intensive industry. The results show that, undertake the production outsourcing is more influential to employment than service outsourcing. The main reason is that at the present stage, production outsourcing, such as processed products and semi-finished products, is still the main part of outsourcing business. It has a significant role in stimulating manufacturing employment. However, the development of service outsourcing is not mature enough. In addition, the promotion effect of undertaking international service outsourcing on capital-intensive industry to employment is more effective.The development of international service outsourcing for China is not only an opportunity, but a challenge. I hope in the promotion of the service outsourcing industry, China’s employment problem can be effectively solved.